CanaDream Posts Rise in 6-Month Sales, Profits
Calgary, Alberta, Canada-based RV rental firm CanaDream Corp. today (Dec. 8) reported increases in sales and net income for the six months, ended Oct. 31.
Revenues for the period were $20.9 million, 6% higher than the prior year. CanaDream recorded operating profit of $7.5 million while net income was $5.2 million, representing a 10% increase from the year prior period of $4.7 million. On a fully diluted basis, earnings per share increased 2.5 cents, or 11%.
Fleet sales revenue increased $943,000, or 26%; rental revenue increased $277,000, or 2%, over the prior period; and operating expenses increased $1.0 million, or 8%. As a result, operating profit of $7.5 million increased $196,000, or 3%.
As of Oct. 31 investment in rental fleet was $32.3 million, an increase of $7.5 million from April 30, primarily due to fleet purchases in the first quarter of $10.8 million. The investment in fleet inventory available for sale was $3.0 million at Oct. 31, 2011, a decrease of $2.0 million from April 30 year-end levels due to unit sales. Fleet and other financing increased $3.9 million, or 16%, to $28.2 million from April 30.
The company noted that its core business, promoting tourism in Canada through the recreational vehicle experience, is seasonal in nature with the majority of its revenue being earned during the May to October period, the first and second quarters of its fiscal year. The majority of the company’s direct expenses are incurred in that same period.
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